Page last updated at 17:58 GMT, Tuesday, 15 December 2009

RBS boss says political meddling is 'damaging' the bank

Royal Bank of Scotland offices in London
RBS shareholders are meeting in Edinburgh

The chief executive of RBS, Stephen Hester, says political meddling is damaging the bank.

"The process of politicisation of RBS is damaging... to our business and to taxpayers' interests" he said, pointing to the fall in the bank's share price.

He was speaking after a meeting in which shareholders backed plans to enter a government insurance scheme.

The asset protection scheme means the Treasury acts as an insurer against the bank's £282bn of bad debts.

Under the terms of the support deal, the UK taxpayers' stake in RBS rises from 70% to 84% after the government invests an extra £25.5bn in the bank.

"Without these measures RBS would be at risk of full nationalisation," chairman Sir Philip Hampton had said earlier.

He told the meeting: "In that event independent shareholders could very well lose most or all of the value in their shares" .

Shareholders voted 99% in favour of the proposal.

Sir Hampton also denied that his board threatened to resign over the bonus row.

"There have been no threatened mass resignations of the board, at any time" he told a shareholder meeting.

He was referring to BBC reports earlier this month that the board had been advised that they would have to resign if the government vetoed planned payouts for its top earners.

Business editor Robert Peston reported that the RBS board believed they would have to act in the interests of shareholders and ensure the bank's pay was competitive enough to attract the best staff.



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites

FROM OTHER NEWS SITES
This is Money 'Baffling' new card rules hurt small firms - 57 mins ago
Financial TimesLombard: Come out fighting - 2 hrs ago
FT Adviser RBS shareholders support entering the gov't scheme 15.12.2009 - 4 hrs ago
People's Daily Online Shareholders back 62 bln pound bailout of British bank - 6 hrs ago
Reuters PRESS DIGEST - British business - Dec 16 - 9 hrs ago
* Requires registration



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific